Financial Analysis Project : Starbucks

Starbucks has developed a brand image that has revolutionized coffee drinking experience. It has created an ambiance that is designed to attract customers and keep them coming back to Starbucks stores. It offers wide varieties of services such as comfortable seating areas with unique music and free wireless Internet for their customers while sipping their favorite coffee. This distinctiveness sets Starbucks apart from most of its competitors and has allowed the company to successfully grow and profit while charging premium prices for their products.

Starbucks is rated as the number one World’s leading coffee distributor. Customers satisfactions are always be in the center of their business and the company works consistently to maintain it as customer look forward to a unique experience when visiting one of Starbuck stores. With over 12,000 stores worldwide, Starbucks has always aimed at achieving and maintaining competition in the industry.  Starbucks success reside in many factors :  the company is admire and respected worldwide,employees are recognized and respected for what they contribute to the success of the company. Open communication

Starbucks started by just making and selling coffee and coffee making equipment but now they sell everything from thermoses to delicious frappachinos. They currently have over 22,000 stores around the world. They’ve recently opened stores in panama Colombia, Brunei, India, Costa Rica, Monaco and Norway. The company is a publicly traded company on the stock market. Starbucks specializes in food service and product supplies.

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

It’s all about the coffee for Starbucks. Starbuck’s core competence is in its ability to effectively leverage its coffee product to entice customers to be repeat customers. There are several ways that they have achieved this successfully.

To ensure brand richness, Starbucks bring the best ingredients and quality control, they also assure that all the employees are constantly involved and be aware of its mission and vision.

Starbucks is one of the most recognizable coffee retail chains in the world. Their brand focuses on high quality coffee using specialized roasting of beans from many countries around the world.

Starbuck being one of the biggest coffee house in Canada but in the world as well, focus on achieving competitive advantage by product differentiation as the delivery of quality products or services that are perceived to be unique and valued by consumers ("Sustained Competitive Advantage of Starbucks", 2016) Starbucks is well-known for tailoring their drinks to a broad customers’ needs by preparing orders that meet customers’ wishes, no matter how crazy they are. Starbucks is also well known for quality products, with stringent guidelines outlining how they pick and harvest their coffee ("Coffee Quality", 2016), to how their coffees are to be prepared, to as detailed as espresso must be served within twenty-three seconds of brewing. (Groth

Starbucks customers are diverse, well educated, young business people looking for a quick and easy way to grab coffee on their way to work. Starbucks values a strong relationship with their customers so they are

McDonald’s, in addition to several other fast food vendors like Burger King, Dunkin’ Donuts, Panera Bread and independent coffee houses remain Starbuck’s toughest competition (Adamy). McDonald’s began introducing its espresso beverage products in 2001, and offers its product at a price between two and three dollars to compete with Starbucks between three and four dollars a cup coffee (Adamy). Similarly, Dunkin’ Donuts has recently implemented a plan to expand nationally (Adamy). On average, Dunkin’ Donuts coffee products cost approximately 20 percent less than Starbucks’ (Ball and Leung). In response, Starbucks has announced recent

Starbucks is acclaimed for its superior value proposition in the early 1990’s by creating an experience around the consumption of coffee, a ‘third place’. The brand is positioned to offer the highest quality coffee, close customer intimacy, and warm atmosphere or ambience.

The Starbucks Company is a purveyor of gourmet coffee that was founded in 1971 at Seattle’s Pike Place Market (Retrieved March 10, 2015, from http://www.starbucks.com/about-us/company-information). At that time Starbucks was a single storefront that offered premium, fresh roasted whole bean coffees. Since opening that single store Starbucks has grown to an international presence with branding that is recognizable worldwide. In addition, Starbucks has increased their product line beyond hot and cold coffee beverages to include hot and cold teas, packaged whole bean and ground coffees, high quality, fresh foods and coffee making equipment and supplies. Starbucks operates a total of 19,767 company operated and licensed stores and operates in 62 countries. In addition to the Starbucks’ brand the company also owns and operates other well-known brands such as Teavana and Seattle’s Best Coffee. (Retrieved March 10, 2015, from http://news.starbucks.com/uploads/documents/Starbucks_Fiscal_2013_Annual_Report_-_FINAL.PDF)

“Starbuck’s mission is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (as cited in Our Company, 2014). Starbucks vision is to “Establish Starbucks as a premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow” (Shah, Hawk, & A, 2011) In order to perform our mission and see our vision we must conduct business by the following values:

Starbucks provide hundreds of products and also with their customized drink; however, it is also a challenge for them. For customers who do not want to choose from bunch of choices, starbucks heterogeneity coffee choices just confuse them. Another problem is the different starbucks location or different baristas make different taste of coffee. If a customer always goes to one specific starbucks location, he/she may not satisfy with the coffee in

Starbucks is and will continue to be one of the largest distributers of a cup of coffee today and into the future.  The Starbucks mission to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” directly correlates with the experience a customer has in each store. They have many ways to differentiate in comparison to competitors because they provide an experience while shopping for a coffee allowing them to charge a premium price.